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Energy

NERC says Discos will compensate electricity consumers for power delivery failure

Discos have been warned to compensate consumers should they fail to supply them the required amount of electricity in the new tariff regulation.

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Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply, NERC postpones increase of electricity tariffs

The Federal Government has warned power distribution companies (Discos) that they will compensate affected consumers for defaulting in service delivery if they fail to supply the required quantum of electricity under the new service reflective tariff regime.

According to a report from Punch, this disclosure was made by Sanusi Garba, the Vice Chairman of Nigerian Electricity Regulatory Commission (NERC), who doubles as a commissioner at the commission, in Abuja. He said that NERC had deployed a mechanism to monitor the Discos.

READ: FG says no electricity tariff increase for poor, vulnerable Nigerians, gives conditions for increase

NERC had revealed that all Discos committed to delivering agreed quantum of power to customers in various categories beginning from September 1, 2020, when the new service reflective tariff regime started. The commission is expected to start monitoring the Discos on a monthly basis to ensure compliance by the power firms in terms of meeting the agreement.

He said the service reflective tariff, which took effect on September 1, 2020, before it was suspended for 14 days after an agreement between the Federal Government and labour unions, would ensure that customers of distribution companies paid for what they consumed.

READ: PenCom recovers N17.51billion from defaulting employers, imposes penalties

Garba said, “The commission has come forward to say tariffs will be service-based, meaning that you will pay your rates in correlation with the level of service you get. Now, obviously, the commission has its own mechanism for monitoring the performance of the Discos. This is because if a Disco says you are in Band C, it means the Disco is committed to giving you between 12 to 16 hours as a minimum.

“So the role of the commission is to monitor and at the end of the month to determine which Disco has complied with their service commitment or not. And consumers will be compensated for failure to deliver on that service. We do not expect consumers to start putting gadgets to monitor electricity.”

READ: CBN moves to ring-fence Disco collections

He explained that the monitoring was on the basis of clusters, as the commission would monitor all consumers in a particular area, for instance, those on Bands A, B or C.

He admitted that NERC would not expect consumers to be the ones to monitor compliance by Discos. He said that consumers are to follow the normal processes of complaining so that the commission will step in to resolve the issue if they believe that there has been service failure.

READ: FG signs bilateral air service agreement with United States, others

When told that many consumers do not have the required meters to make the right tariff payments, Garba said the government was working towards providing funding for meters.

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He said, “On the issue of metering and the concern that consumers don’t have meters, I’m sure you are aware that the commission issued an order capping the amount of energy that an unmetered customer should be billed. That was designed to make all Discos to expedite the process of providing meters to all consumers because that is the way the electricity business is designed to run.

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Garba said the commission was now looking at the timelines, the rates, installation rates, specifications, etc, in order to make the story of estimated billing a thing of the past.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

4 Comments

4 Comments

  1. obot

    October 11, 2020 at 6:13 pm

    liars do it first before story

  2. Udo

    October 11, 2020 at 8:08 pm

    Hope the agency of government shows some of seriousness

  3. Chris

    October 12, 2020 at 7:21 am

    Both NERC and the DISCOS kill and divide

  4. Rahman

    October 12, 2020 at 4:15 pm

    There are few questions to ask
    1- do we suppose to buy the meter from the discos or is for free
    2- which quarter do we lay our complain for unmeter household and exorbitant bills are given to
    3- is police force responsible to carry out the FG regulations on the amount stated for unmeter house

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Energy

Nigeria breaks transmission record again, hitting 5,801.60 MW

The TCN has broken its own transmission record three times in the space of a week.

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FG set to create at least 5 million jobs for youths in the power sector – Minister of Power , Consortium of Western investors to inject upwards of $5 billion in Nigeria's renewable energy sector, Power: Nigeria's deal with Siemens - the birth of a new era?

The Transmission Company of Nigeria announced another record, as grid transmission hits a peak of  5801.60 MW.

This was disclosed by the Minister of Power, Engineer Sale Mamman in a statement on Tuesday evening.

“Back-to-Back Peak Transmission, Yesterday, 1st of March at 9:30 pm, we hit a new HIGH,” he said.

He added that 5801.60 MW transmitted at a frequency of 50.09 hz.

“Next Level heights for the Power Sector. Kudos to all at the TCN & MoP striving towards stable energy for Nigerians,” he added.

In case you missed it 

  • Nairametrics reported yesterday that the Transmission Company of Nigeria (TCN) announced that it hit another record milestone on transmission, as it recorded a national peak of 5,615.40MW.
  • On March 1st that the TCN announced it has broken its transmission record once again, after hitting a record of 5,584.40 MW.

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Energy

Siemens Power deal: FG to collaborate with Egypt

Nigeria is set to collaborate with Egypt towards a total overhaul of the power grid and distribution systems.

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on

FG set to create at least 5 million jobs for youths in the power sector – Minister of Power , Consortium of Western investors to inject upwards of $5 billion in Nigeria's renewable energy sector, Power: Nigeria's deal with Siemens - the birth of a new era?

President Muhammadu Buhari ordered the Ministry of Power to work with the Egyptian government on an effective rollout of the  Presidential Power Initiative with German engineering company Siemens AG.

This was disclosed by Mr. Aaron Artimas, Special Adviser, Media and Communication to the Minister of Power,  in a statement in Abuja on Monday.

The Special Adviser revealed that the Minister of Power, Mr. Sale Mamman, disclosed this in a meeting with the  Egyptian Ambassador to Nigeria, Mr. Ihab Awad, citing that the FG wants to learn from Egypt’s successful implementation of a power upgrade with Siemens AG.

READ: Plan to overhaul Nigeria’s Power grid attracts investors – Siemens

“The President had reasoned that obtaining more information from Egypt will enable Nigeria to maximize our agreement with Siemens, towards the total overhaul of our power grid and distribution systems,” he said.

The Power Minister said that the FG would leverage on Egypt’s rollout programme also and added that both countries would also collaborate on renewable energy, and improving other sectors of the electricity value chain.

What you should know 

  • Nairametrics reported that the FG  and Siemens AG have signed a contract for the pre-engineering phase of the Presidential Power Initiative.
  • In 2018, Siemens, Elsewedy Electric, and Orascom Construction launched a 14.4 GW  project under 30 months including the largest combined cycle megaprojects in Beni Suef, Egypt.

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